Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street. Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here is one small-cap stock that could be the next big thing and two best left ignored.
Two Small-Cap Stocks to Sell:
TEGNA (TGNA)
Market Cap: $3.41 billion
Spun out of Gannett in 2015, TEGNA (NYSE: TGNA) is a media company operating a network of television stations and digital platforms, focusing on local news and community content.
Why Do We Pass on TGNA?
- Sales tumbled by 2.5% annually over the last two years, showing consumer trends are working against its favor
- Forecasted revenue decline of 8.5% for the upcoming 12 months implies demand will fall even further
- Projected 4.5 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
TEGNA is trading at $21.20 per share, or 11.4x forward P/E. If you’re considering TGNA for your portfolio, see our FREE research report to learn more.
Trinity (TRN)
Market Cap: $2.30 billion
Operating under the trade name TrinityRail, Trinity (NYSE: TRN) is a provider of railcar products and services in North America.
Why Do We Steer Clear of TRN?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 2% annually over the last five years
- Forecasted revenue decline of 18.5% for the upcoming 12 months implies demand will fall off a cliff
- 9.3 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
At $28.42 per share, Trinity trades at 6.2x forward EV-to-EBITDA. To fully understand why you should be careful with TRN, check out our full research report (it’s free).
One Small-Cap Stock to Watch:
Piper Sandler (PIPR)
Market Cap: $5.90 billion
Tracing its roots back to 1895 and rebranded from Piper Jaffray in 2020, Piper Sandler (NYSE: PIPR) is an investment bank that provides advisory services, capital raising, institutional brokerage, and research for corporations, governments, and institutional investors.
Why Could PIPR Be a Winner?
- Additional sales over the last two years increased its profitability as the 25.6% annual growth in its earnings per share outpaced its revenue
- Impressive 13.2% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle
- ROE punches in at 14.3%, illustrating management’s expertise in identifying profitable investments
Piper Sandler’s stock price of $333.79 implies a valuation ratio of 22.3x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
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